"We are mindful that our employees and customers hold a wide range of beliefs, and the external and legal environment related to political and social issues continues to evolve," Ford CEO Jim Farley said in a memo to employees.
Several U.S. companies including JPMorgan Chase and Harley Davidson recently modified their DEI policies, and home-improvement retailer Lowe's joined their ranks this week.
Corporate America stepped up its focus on diversity initiatives after widespread protests against racial and gender disparities in leadership following the police killings of George Floyd and other Black Americans in 2020.
Of late, however, some companies have backtracked, altering DEI programs meant to boost racial and ethnic representation at workplaces in response to pressure from conservative legal organizations. Some firms have received public shareholder letters since 2021 saying their DEI programs constitute illegal discrimination and a breach of directors' duties to investors.
Groups opposed to diversity policies have been energized by the U.S. Supreme Court ruling in June 2023 that struck down affirmative action in university admissions, a ruling that does not directly affect employers. Advocates in favour of greater diversity have said the opposition to DEI threatens progress of underrepresented groups in corporations, especially in leadership roles.
Former President Donald Trump, current Republican candidate for U.S. president, has been highly critical of DEI initiatives.
Farley said in the memo that the company would focus on taking care of employees and customers "versus publicly commenting on the polarizing issues of the day."
The Dearborn, Michigan-based company's employee resource groups have evolved over the past year to focus on networking, mentorship, professional development and community service, he said.
Farley said Ford decided to stop participating early this year in some external culture surveys, including one put together by LGBTQ advocacy group Human Rights Campaign, and various "best places to work" lists.
"Ford Motor Company is abandoning its financial duty to recruit and keep top talent from across the full talent pool," said Human Rights Campaign president Kelley Robinson in a statement.
Bloomberg earlier reported the Ford policy change.
Robby Starbuck, a conservative activist who has examined and confronted companies over their employment policies, provided the memo to Reuters. Ford confirmed the accuracy of the memo, but declined to comment further.
"This isn't everything we want but it's a great start. We're now forcing multi-billion dollar organizations to change their policies," Starbuck said on social media platform X.
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